On my first day in office, I will label
China a currency manipulator and under US law once that label has been
affixed the president is able to apply tariffs to any of their goods ...
I’ve made it very clear to the Chinese that’s where we’ll go if they
continue the practices they’re pursuing right now.

“I love what Mitt was saying about China and
the rest of the world, which is just absolutely ripping us off and
trying to destroy this nation with a smile. And I think that Mitt Romney
really sees China for what they are.”

It is a fact that China maintains a huge trade
deficit with the U.S.

The exchange rate of China’s currency, the
Renminbi, is kept artificially low making it very difficult for U.S.
products to compete with cheap Chinese imports. Imports of Chinese products
have devastated the U.S. manufacturing industry. To make matters worse,
China establishes tariffs on a range of key U.S. export products, such as
automobiles, making it even more difficult for the U.S. to reverse the trade
deficit which continues to grow.

Compounding the issue is China’s flagrant
violation of intellectual property laws where Chinese firms pirate many U.S.
products with almost total impunity thereby removing another means of
balancing the trade deficit.

The trade imbalance has led to China accumulating vast reserves of US
dollars, becoming the biggest purchaser of U.S. treasury bonds, and becoming
America’s chief creditor.

According to the U.S. Treasury, as of November
2011, China held 1.1 trillion dollars in U.S. treasury securities.

All this has U.S. Republican presidential
candidates and many economists speaking out loudly against China and calling
for retaliatory measures such as tariffs, getting tough on Chinese violation
of intellectual property laws, and pressuring China to revalue its currency.

So,

Are Romney, Trump and a host of
prominent economists correct about China?

Do they make a compelling case for
abandoning a bad China trade policy?

The problem is that what Romney, Trump and other
China trade policy critics miss is that the trade deficit is not a result of
a poorly thought out U.S. trade policy.

In fact the U.S. trade policy with China has
been meticulously thought out. There is growing evidence that it is payback
for the CIA’s decades long covert use of China’s “black gold” - gold that
does not appear on any international gold registry.

China’s “black gold” has been hidden for over
six decades in order to fund a globally coordinated set of covert projects
hidden from public view by the CIA and a consortium of national intelligence
organizations and transnational corporations - a
Global Manhattan Project.

Two very recent court cases and a June 2009 incident on the Italian/Swiss
border involving high denomination 1934 Federal Reserve notes reveal a
remarkable historical fact. During the Second World War era, vast quantities
of Chinese gold reserves were either looted and hidden by the Japanese
Imperial Army in the Philippines, or transferred by the Chinese Nationalist
government to international safe havens.

The biggest beneficiary of this vast historical
movement of “black” gold was the U.S. government which arranged for a
significant portion of China’s “black” gold to be transferred into the US.
Federal Reserve system, and Federal Reserve bonds and/or notes issued in
return.

The holders of these high denomination Federal Reserve bearer bonds/notes -
often the descendents of Chinese/Asian royal families - could only redeem
these bonds after lengthy periods of time, e.g., five decades.

As a safeguard to ensure the “black gold” would
not become publicly tradable, the Federal notes/bonds were printed with
spelling errors and other abnormalities that would make them appear
fraudulent. Attempts to redeem these bearer bonds have been unsuccessful.

This has led to court cases and financial
incidents that have drawn media attention over the high denomination bonds
in dispute and their validity. Most public media attention wrongly concludes
that these bonds are fraudulent as outlined in a
recent Bloomberg article
focusing on bonds found in the Philippines.

A mysterious trillion dollar lawsuit filed on
November 23, 2011 in the U.S. District Court for the Southern District of
New York, claims that 145.5 billion dollars worth of gold was secretly given
to the U.S. government in the mid-1930s by the then Nationalist government
of China for safekeeping.

The
lawsuit claims that 1934 U.S. Federal
Reserve notes were issued to the Chinese government, and the gold
transferred to the Federal Reserve Bank:

Upon information and belief, between 1927
and 1938, as a result of arrangements made between China and the United
States, the United States… leased vast amounts of gold from the
nationalist Chinese Government, known as Kuomintang.

During this period, China was partly
occupied by Japanese troops and there was a fear of China being overrun
by the Japanese.

It is claimed that a total sum of almost one
trillion dollars representing both the principal and accumulated interest of
the 1934 Federal Reserve notes was fraudulently taken from the plaintiff,
Neil Keenan, an agent for the owners, a mysterious Asian entity called
“The Dragon Family.”

Plaintiff Neil Keenan claims he was
entrusted in 2009 with the financial instruments - which included U.S.
Federal Reserve notes worth $124.5 billion, two Japanese government
bonds with a combined face value of $19 billion, and one U.S. "Kennedy"
bond with a face value of $1 billion - by an entity called the Dragon
Family, which is a group of several wealthy and secretive Asian
families.

The Japanese bonds and Kennedy bond were
allegedly added to the initial bond issue as interest.

To calculate the total amount of gold ‘leased’
by China’s nationalist government to the Federal Reserve we can use the 1938
historic figure (below image) for the price of gold which was $34.87 per troy oz. $124.5
billion
converts into an approximate total of 3.6 billion troy oz or 110
thousand metric tons

Given that the world’s total gold reserves is officially only 165 thousand
tons, this is a staggering amount of gold that was secretly leased from
China’s nationalist government.

Using the current spot price of gold, nearly
$1700 per troy oz, the value of Chinese gold in possession of the Federal
Reserve has a price of six trillion dollars! This is more than double the
total income for the 2012 U.S. federal budget of 2.6 trillion dollars.

Surprisingly, there appears to be another
similar size cache of gold that was leased by China as an incident on the
Swiss-Italian border in 2009 illustrates.

2. The Italian/Swiss
border “Chiasso Incident”

US Federal Reserve Notes
seized

near Chiasso, Switzerland by the Italian Financial Police

In June 2009, two Japanese citizens - Akihiko
Yamaguchi and Mitsuyoshi Watanabe - were caught on a train in Italy while
traveling to Switzerland with a total of 134.5 billion dollars in US Federal
Reserve notes, bonds and other financial instruments.

The bonds were confiscated by the Italian
financial police and the two Japanese arrested, and then later released.

According to the November 2011 District Court
filing by Keenan, the bonds apprehended near Chiasso, Switzerland in June
2009 were genuinely issued by the Roosevelt administration in exchange for
gold deposited by the Nationalist Government of China some time before the
Japanese invasion on July 7, 1937.

The bonds seized near Chiasso, are separate to
the bonds allegedly stolen from Keenan later in November 2009 as described
in the Keenan law suit:

Upon information and belief, such bank
capitalization [$145 billion contested in November 2011 lawsuit] was to
include yet another approximately One-Hundred Thirty-Four Billion,
Five-Hundred Million Dollars ($134,500,000,000,000) Dollars of financial
instruments also owned by the Dragon Family, including FRNs and Kennedy
Bonds virtually identical to the DFFI [Dragon Family Financial
instruments] which were seized on the Italian/Swiss border in June 2009.
[p. 10]

The US Federal Reserve notes seized at Chiasso
in June 2009 was $124.5 billion out of a total of $134.5 billion.

Combined with the $124.5 billion later taken
from Keenan in November 2009 - the subject of the November 2011 lawsuit -
that means that a total of $249 billion of Federal Reserve bonds were issued
for China’s gold. Again using the 1938 figure (far above image) for the price of gold ($34.87
per troy oz), this suggests that the amount of gold ‘leased’ by China’s
nationalist government was a total of 7.2 billion troy oz or 220 thousand
metric tons.

That is more than the worlds total gold reserves of 165 thousand tons.

Again, using the current spot price of gold,
$1700 per troy oz, the value of Chinese gold in possession of the Federal
Reserve has a price of twelve trillion dollars! This is close to the entire
US Gross Domestic Product which in 2010 was 14.5 trillion dollars. Could
such vast quantities of gold be secretly in circulation?

Another U.S. District Court case suggests that
indeed such quantities do secretly circulate.

3. Joseph Riad versus
Department of Homeland Security Lawsuit

A lawsuit revealing multi-billion dollar gold certificates issued by the
U.S. Federal Reserve was lodged in the Pennsylvania District Court in
December 2011.

The
case was reported on December 23, 2011 by
Courthouse News. The lawsuit again reveals the redemption efforts by private
entities who came into possession of the Federal Reserve bearer bonds.

The case involves a total of $750 billion in
gold certificates placed in three ornate chests created in the 1930s by
Chinese artisans work for the then nationalist government. The case has been
analyzed in by Wilcock in an investigation into immense
quantities of “black” gold originating from China.

The core complaint of the lawsuit is that Nicholas Jones, a U.S. Federal
Agent in the Department of Homeland Security, defrauded the plaintiff,
Joseph Riad, of gold backed Federal Reserve bearer bonds totaling $15
billion out of the total amount of $750 billion.

"Plaintiff has spent the previous nine (9)
years engaging various and numerous experts and legal counsel so as to
thoroughly and conclusively establish the existence, veracity, and
authenticity of his bonds."

After Riad submitted 15 of the bonds to Agent
Jones from the Department of Homeland Security acting in an official
capacity for the purpose of redeeming the bonds, Riad was defrauded as
outlined in the complaint:

Agent Nicholas Jones, as an agent of the
United States and in his individual capacity, intentionally and
willfully interfered with the personal property of Plaintiff sufficient
enough to exercise complete and total dominion or control of Plaintiff’s
fifteen (15) one billion dollar gold-backed bearer bonds when he refused
to return said bonds to Plaintiff upon request that he do so by
Plaintiff.

This case reveals how elements within the U.S.
Federal Government set out to defraud private investors and/or those
representing the owners of the 1934 Federal Reserve Notes, by pretending to
redeem them, but with no intention of doing so.

“bonds was provided to the Chinese
Government through the bank of China” (sic).

So again, we have an ongoing court case
involving large denomination Federal Reserve notes/bonds issued against
Chinese gold.

According to the gold certificate included in
each of the three chests, the Chinese gold held as collateral for the bond
issue amounted to 250 billion dollars for 25,000 metric tons.

This comes out to a staggering 75,000 metric
tons of gold in total for the $750 billion. Almost half of the world’s known
gold supply!

The conversion rate comes out to $310 per troy oz which was the
gold spot price in 1979. This suggests the 1934 Federal Reserve bonds were
issued to the bearer in 1979 for the gold collateral (75,000 metric tons)
even though the chests and Federal Reserve bonds were created around the
same time in the 1930s.

So it appears that some entity linked to the
U.S. government released or traded the 1934 bond issue for the hidden
Chinese gold in 1979.

The Riad Court case reveals that the entity in question has individuals such
as Nicholas Jones embedded in select U.S. government agencies such as the
Department of Homeland Security. According to Fletcher Prouty, a former U.S.
Army Colonel, the U.S. government agency that regularly embeds personnel in
other federal departments/agencies is the Central Intelligence Agency.

I have shown in an earlier paper titled “The
Black Budget Report,” that the CIA is the agency responsible for generating
revenue for highly classified covert U.S. projects.

It’s highly likely that the Riad case
illustrates how the CIA sometime around 1979, traded some of the Chinese
gold secretly hidden in remote locations in the Philippines as persuasively
argued by David Guyatt in The Secret Gold Treaty.

4. Chinese/Asian Gold
hidden in the Philippines during WWII

Guyatt conducted extensive research to investigate claims by an Australian
investor who was charged with possessing fraudulent US Federal Reserve
bonds.

During his research, Guyatt found that black
gold was a highly sought and traded commodity in the world of covert
operations. He found that much of the looted gold was moved during the
Japanese occupation of China and other Asian nations.

Guyatt describes a Japanese official, Kodama,
responsible for hiding much of China’s and Asia’s looted gold in the
Philippines:

Kodama worked for the Japanese prince who
headed the Japanese secret service and who was overlord of the Japanese
plunder teams known as "The Golden Lily."

The Golden Lily operated in Mukden in
Manchuria, but had its headquarters in Manila, the capital of the
Philippines.

Kodama was tasked with,

"shepherding masses of war loot in naval
vessels ahead of him under the watchful eye of naval officers
seconded to him."

The loot had been plundered from all over
Asia under Kodama'a authority and was moved "up the coast of Borneo
through Brunei to the Philippines," where it was eventually buried.

Ferdinand Marcos

President
of the Philippines - 1965 - 1986

Importantly, a young Philippines lawyer learned
of this looted Asian gold hidden in his country, and began receiving
political favors for its covert trade. The lawyer, Ferdinand Marcos,
eventually become the Philippines most powerful politician in recent
history.

Guyatt reveals how Marcos rose in power and
influence as a trustee over “black gold” that was under the nominal control
of the Vatican:

Father Diaz was entrusted by the Vatican to
take charge of Vatican gold buried on the Philippines. The “Vatican
gold” was identified as bullion that had been “captured by Hitler” and
that had belonged to the royal families of Europe and been placed under
the trusteeship of the Vatican. Also included was gold plundered by the
Japanese…

Giving evidence to the Philippine Senate
Blue Ribbon Committee on 14 October 1999, Tagle noted that Marcos, in
his capacity as lawyer and chief trustee of Sta. Romana,

“succeeded in isolating the nominees or
trustees of the gold certificates from the physical assets - so much
so, that it is almost impossible to recover them without piecing the
various pieces like a mosaic.”

By abusing his position of trustee, Marcos
effectively gained control of Sta. Romana’s gold and, later, when he had
become President, used the “Central Bank to transact the gold.”

Guyatt cites Sterling Seagrave, author of the
Marco Dynasty, that as Philippines President (1965-1986), Marcos secured,

"…large loans using as collateral gold
bullion that he was as yet unable to get out of the Philippines."

In addition to laundering drug money on
behalf of its owners, the CIA,
Nugan Hand Bank is believed to have been
heavily involved in the transfer of large quantities of so-called
"Marcos" gold flown by CIA pilots from Clark AFB in the Philippines to
the secret US Pine Gap facility located at Alice Springs, Australia.

We now know that just one Golden Lily “777”
treasure site was worth almost $200 billion in 1945 US dollars. We also
know that there were dozens of triple seven sites, plus some triple
nines and, of course, tens of dozens of smaller troves.

In fact, Japan’s Golden Lily teams stashed
plunder in a minimum of 172 burial sites on the Philippines alone. A
reliable estimate is that the value of gold at these 172 sites
collectively totaled $100 trillion in 1945 US dollars - a figure that
simply dwarfs the present day global debt. This sum is so massive as to
be virtually incomprehensible - yet it probably does not include the
complete figures, as we shall see.

We now know that just one Golden Lily “777”
treasure site was worth almost $200 billion in 1945 US dollars.

This vast quantity of secretly hidden but
covertly traded “black gold”, as much as $100 trillion in 1945 dollars,
helps explain why the US. Federal Reserve decided to issue such high
denomination bonds/notes as one billion in 1934.

Converting this astronomical figure into 2012
terms using the annual
CPI increase, means as much as $1,200 trillion of
black gold was hidden in the Philippines alone!

Given that the
entire planet’s GDP is
approximately 63 trillion dollars, that means that the hidden Philippines
gold could fund the entire planet’s economy for nearly 200 years!

5. Conclusion
What the above two court cases and Chiasso incident reveal is that vast
quantities of Chinese “black gold” were taken out of mainland China and
leased to the U.S. government and
Federal Reserve Bank.

High denomination 1934 Federal Reserve Notes and
Bonds were issued to representatives of the former Kuomintang government
and/or Asian royal families that claimed ownership to much of this wealth.
After a period of time, the Kuomintang and/or the royal families would want
to redeem these Federal Reserve bonds, and enlisted Western financiers and
investors to help in the process.

Not that successfully as the above two court
cases reveal.

In addition to the gold secretly leased to the U.S, vast quantities of
“black gold” looted from China and other Asian countries by Japan’s Golden
Lily teams ended up in the Philippines, and to a lesser extent in Indonesia
according to Guyatt. The quantities involved go as high as $100 trillion in
1945 dollars, or 1,200 trillion in 2012 dollars!

This gold was covertly
traded during the Marcos regime with the assistance of
the Vatican and CIA.

For all the principal parties, the black gold
offered the opportunity for almost unlimited funds for covert projects and
profits for middlemen such as the Marcos family.

Given that much of the black gold hidden in the Philippines was looted out
of mainland China by Japanese Golden Lily teams during the World War II era,
the Peoples Republic of China (PRC) would have much to say about the
ownership and use of black gold hidden in the Philippines. The existence of
Taiwan (Republic of China - ROC) conflates the ownership issue of the
Philippines “black gold” since it creates a buffer to ownership claims by
the People’s Republic.

Perhaps this is why the U.S. was such an
important historic supporter of Taiwan, ensuring that the People’s Republic
of China was only admitted to the UN in November 1971.

Currently, the
U.S.
Seventh Fleet patrols the waters between Taiwan and mainland China ensuring
the former’s independence.

Given the legitimate interests of the People’s Republic of China over the
ownership and use of black gold hidden in the Philippines, and/or leased by
the Kuomintang, it’s natural to assume some deal was struck to appease China
by the main beneficiary of the covert trade in black gold - the United
States!

This deal was to basically open the U.S. economy
to Chinese products so that China could be silenced and paid back in part
for looted Chinese gold that remains hidden in the Philippines with no
timeline over when and if it will be ever repatriated.

So what entity in the U.S. government is the main conduit for this covert
trade in black gold?

As implied in the Riad case, where the defendant
is an agent with the Department of Homeland Security, the main conduit
appears to be the CIA. This CIA connection is discussed at length in Guyatt’s book, The Secret Gold Treaty. While central bankers, shady
investors, and middlemen have made untold millions in profits from the
covert trade in black gold, this is only a trickle of the vast amounts of
revenue that changes hands.

Most of the revenue raised by the black gold trade is used by the CIA to
fund a covert Global Manhattan Project.

In an
earlier article, I cited
Inspector General reports that the CIA in the three year period from 1998 to
2000 laundered up to 1.7 trillion dollars annually through the U.S.
Department of Defense. In a
subsequent article, I showed how the CIA
was instrumental in setting up
the Bilderberg Group in 1954 to fund a global
Manhattan project.

What is this
Global Manhattan Projectfocused
on? That is the multi-trillion dollar secret - a secret that the People’s
Republic of China is paid off to keep through a highly favorable U.S. trade
policy.

Republic Presidential candidates along with many
economists will likely protest loudly what appears to be an illogical trade
policy and promise to get tough on China during the 2012 Presidential
election.

Such protests are unlikely to succeed as long as
covert CIA funding of a Global Manhattan Project using looted Chinese/Asian
“black gold” continues to be a highly classified secret kept from the global
public.